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Q1. Describe the reason as to why the AC curve is U shaped by considering the different returns to factor.

Q2.

a) Define the term MC.
b) describe how would you deduce MC via a graphical exercise?

Q3.

a) Describe the relation between AC and MC.
b) Illustrate that AC is equivalent to MC if AC is minimum.

Q4.

a) Describe the relation between MC and AVC.
b) Illustrate that MC = AVC if AVC is minimum.

Q5.

a) Differentiate between the short run and long run with respect to the costs of firm.
b) Describe the method to deduce long run total cost. 

Microeconomics, Economics

  • Category:- Microeconomics
  • Reference No.:- M912514

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